JOY TARA ENTERPRISE,ASANSOL vs. ITO, ASANSOL

This is an appeal preferred by the assessee against the order of Learned Commissioner of Income-tax (Appeals)-NFAC, Delhi [hereinafter referred to Ld. ‘CIT(A)’] dated 26.05.2023 for the Assessment Year (in short ‘AY’) 2015-16.

At the outset it was pointed out that the appeal is barred by limitation by 2 days. After hearing the rival sides on the issue of delay and being satisfied with the reasons put across, we are inclined to condone the delay.

Ld. Counsel for the assessee has challenged the order of Ld. CIT(A) on the ground that the same was passed ex-parte without providing reasonable opportunity of being heard to the assessee and without deciding on merits of the case.

After hearing the rival contentions and perusing the material on record, and the impugned appellate order, we observe that Ld. CIT(A) has decided the appeal ex-parte without deciding the same on merit when the assessee failed to respond to three notices issued on 18.02.2021, 08.02.2023 & 09.05.2023. We have perused the provisions of Section 250(6) of the Act and find that Ld. CIT(A) while passing the appellate order has to state the issue for determination, the decision thereof and reasons for such decision qua each issue raised by the assessee in the appeal which has not been done by the appellate authority. Therefore, in our opinion, the order passed by Ld. CIT(A) cannot be sustained. We therefore, restore this appeal back to the file of Ld. CIT(A) with the direction to decide the same on merit after giving reasonable opportunity of hearing to the assessee.